HSBC set to pay record fine of USD1.921bn to US authorities

HSBC has reached an agreement with US authorities in relation to investigations into inadequate compliance with anti-money laundering and sanctions laws. The payments made by the bank will total USD1.921BN. In addition, HSBC has also reached an agreement to achieve a global resolution with all other US government agencies investigating conduct related to the above issues. This includes a Deferred Prosecution Agreement (DPA) with the US Department of Justice. An undertaking with the United Kingdom Financial Services Authority is shortly anticipated.

Under these agreements, HSBC will continue to fully cooperate with regulatory and law enforcement authorities. It will also take further action to strengthen its compliance policies and procedures. Stuart Gulliver, HSBC Group CEO, said: “We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes. While we welcome the clarity that these agreements bring, ensuring the highest standards wherever we do business is an ongoing process. We are committed to protecting the integrity of the global financial system.”

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